Challenges for China's reform of government procurement

Journal of Contemporary China

Volumn 15, Issue 48, 2006, Pages 533-549

  Chou, Bill K P ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

GOVERNMENT RELATIONS; POLITICAL REFORM; TRADE LIBERALIZATION;

ASIA; CHINA; EURASIA; FAR EAST;

EID: 33749020540     PISSN: 10670564     EISSN: 14699400     Source Type: Journal    
DOI: 10.1080/10670560600736574     Document Type: Article

References (77)

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2. Sue Arrowsmith and Martin Trybus, 'Introduction', in Sue Arrowsmith and Martin Trybus, eds, Public Procurement: The Continuing Revolution (The Hague: Kluwer Law International, 2003), p. ix;
3. Simon J. Evenett and Bernard M. Hoekman, 'Transparency in government procurement: What can we expect from international trade agreements?', in Arrowsmith and Trybus, eds, Public Procurement, p. 269. A copy of GPA can be found in Agreement on Government Procurement, available at: http://www.wto.org/english/docs_e/legal_e/gpr-94_e.pdf, (accessed 2 March 2004).
4. Evenett and Hoekman, 'Transparency in government procurement', p. 269.
5. UNDP, Making Global Trade Work for People (London and Sterling: Earthscan, 2003), p. 297.
6. Commission of the European Communities, Research on the Cost of Non-Europe: Basic Findings Volume 5 Part A, The Cost of Non-Europe in Public-Sector Procurement, quoted by Sue Arrowsmith, Government Procurement in the WTO (The Hague: Kluwer Law International, 2003), p. 22.
7. In March 2005, 1 yuan = US$0.12. In 2003, China's GDP amounted to 11,669 billion yuan. See Guojia tongji ju, Er ning ning san nian guomin jingji he shehui fazhan tongji gongbao [Statistical Report of Economic and Social Development in 2003 ], available at: http://www.stats.gov.cn/tjgb/ndtjgb/qgndtjgb/t20040226_402131958.htm, (accessed 14 May 2004).
8. Transparency International, The TI Source Book: Applying the Framework (1997), available at http://www.transparency.de, quoted from Bernard Hoekman, 'Using international institutions to improve public procurement', The World Bank Research Observer 13(2), (1998), p. 249.
9. Tom Moore, China in the World Market: Chinese Industry and International Sources of Reform in the Post Mao Era (Cambridge: Cambridge University Press, 2002);
10. Daniel H. Rosen, Behind the Open Door: Foreign Enterprises in the Chinese Marketplace (Washington, DC: Institute for International Economics and Council on Foreign Relations, 1999).
11. David Zweig, Internationalizing China: Domestic Interests and Global Linkages (Ithaca: Cornell University Press, 2002), p. 8;
12. Carla P. Freeman, 'Province, center, and the World Trade Organization: Liaoning and China's WTO accession', Issues and Studies 38(3), (2002), p. 13.
13. Fuguo Cao, 'China's government procurement reform: From the bidding law to the government procurement', in Arrowsmith and Trybus, eds, Public Procurement, pp. 62-63.
14. Wang Quanxing, 'Zhengfu caigou zhidu yanjiu' ['A study of the government procurement system'], in Qi Duojun, ed., Jingjifa luncong [Serial Theses of Economic Law ] (Beijing: China fangzheng chubanshe, 2000), p. 73.
15. Asian Development Bank, Technical Assistance to the People's Republic of China for the Formulation of the Government Procurement Law (Manila: Asian Development Bank, 2001), p. 1.
16. Yu An, Zhengfu caigou zhidu de fazhan yu lifa [The Regulations on Government Procurement] (Beijing: Zhongguo fazhi chubanshe, 2002), p. 1.
17. Cao, 'China's government procurement reform', pp. 68-69.
18. Economic and Social Affairs, the United Nations, World Public Sector Report 2003: E-Government at the Crossroads (New York: United Nations, 2003), p. 45.
19. 'Xiao Jie fubuzhang zai quanguo zhengfu caigou gongzuo huiyishang de jianghua' ['The speech of Vice Minister Xiao Jie in the working conference of All-China government procurement'], available at: http://www.mof.gov.cn/wwwroot/C40-20020612145047369/news/ 20021111123250.html, (accessed 1 March 2004)
20. 'Er ning ning er nian quanguo zhengfu caigou guimo tupo yiqianyi' ['In 2002, the value of government procurement exceeded 100 billion yuan'], available at: http://www.ccgp.gov.cn/web/tongji/2002fifth.htm, (accessed 28 February 2004).
21. For details of the evolution of the international regulatory regime of government procurement, see World Trade Organization, Overview of Agreement on Government Procurement, available at http://www.wto.org/ english/tratop_e/gproc_e/over_e.htm, (accessed 26 February 2005).
22. Yingyi Qian and Barry R. Weingast, China's Transition to Markets: Market-preserving Federalism, Chinese Style (Stanford, CA: Hoover Institution on War, Revolution and Peace, Stanford University, 1995);
23. Marc Blecher and Vivienne Shue, 'Into leather: State-led development and the private sector in Xinji', The China Quarterly no. 166, (2001), pp. 368-393.
24. A copy of the Law can be found in China Court Web, available at: http://www.chinacourt.org/flwk/ show1.php?file_id=18004&str1=%BE%BA%D5%F9, (accessed 19 October 2004).
25. Also see Asian Development Bank, The 2020 Project: Policy Support in the People's Republic of China (Manila: Asian Development Bank, 2002), pp. 188-189.
26. Li Wenliang, WTO yu zhongguo zhengfu guanli [WTO and Chinese Government Administration] (Changchun: Jilin renmin chubanshe, 2003), p. 144.
27. Hao Xiaoguang and Jiang Hongqi, 'Jilin shen shixing zhengfu caigou zhidu wenti yanjiu' ['A research of implementing government procurement in Jilin province'], in Liu Shangxi, ed., Zhengfu caigou zhidu yanjiu wenji [A Collection of Research Manuscripts on Government Procurement] (Beijing: Jingji kexue chubanshe, 2000), p. 286.
28. A copy of the Interim Method of Government Procurement can be obtained from Meng Chun, Zhengfu caigou lilun yu shijian [The Theories and Practices of Government Procurement] (Beijing: Jingji kexue chubanshe, 2001), pp. 303-312.
29. The government procurement regulations of the three cities can be found in Yu, Zhengfu caigou zhidu de fazhan yu lifa, pp. 140-146, 152-163, 164-170.
30. Stanley Lubman, 'Through a glass, dimly: Perceptions of China in the American business community', Problems of Post-Communism 47(2), (2000), p. 35.
31. Hoekman, 'Using international institutions to improve public procurement', p. 252.
32. Robert R. Hunja, 'Obstacles to public procurement reform in developing countries', in Arrowsmith and Trybus, eds, Public Procurement, p. 15.
33. Kong Qingjiang, China and the World Trade Organization: A Legal Perspective (New Jersey: World Scientific, 2002), pp. 195-196.
34. Jingbin Tian, 'Enforcement of public procurement rules in China', in Arrowsmith and Trybus, eds, Public Procurement, pp. 86-87, 94-96.
35. 'WTO yu zhengfu caigou yanjiban' ['The advanced course on WTO and government procurement'], Zhongguo huiyi wang [China Conference Net], available at: http://www.chinameeting.com/peixun/2002/0303.htm, (accessed 13 May 2003).
36. An interview with a former director of a state-owned enterprise in Dongguan City of Guangdong Province in April 2004. Liu Hua, Li Gan and Yu Bufan, 'Woguo zhengfu caigou cunzai de wenti ji duice yanjiu' ['A study of the problems of government procurement in China and the counter-measures'], Zhongguo wuliu yu caigou [China Logistic and Purchasing] no. 1, (2003), p. 38;
37. Meng, Zhengfu caigou lilun yu shijian, p. 175; Xue Fei, 'Beijing shi tansuo zhengfu caigou zhidu jian chengxiao' ['Beijing's exploration in government procurement was effective'], in Liu, ed., Zhengfu caigou zhidu yanjiu wenji, p. 255;
38. Chongqing shi caizhengju, 'Chongqing shi tuixing zhengfu caigou zhidu mian mian guan' ['An analysis of the government procurement system of Chongqing City'], in Liu, ed., Zhengfu caigou zhidu yanjiu wenji, p. 271.
39. Tian, 'Enforcement of public procurement rules in China', pp. 86-87, 94-96.
40. Asian Development Bank, Technical Assistance to the People's Republic of China for the Formulation of the Government Procurement Law, p. 2.
41. Fernando Branco, 'Favoring domestic firms in procurement contracts', Journal of International Economics 37, (1994), pp. 65-80.
42. The GPA signatories are as follows: Canada, the European Union (including its 25 Member States: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom), Hong Kong, Iceland, Israel, Japan, Korea, Liechtenstein, Norway, Singapore, Switzerland, and United States. See 'Committee on Government Procurement', WTO Organization, available at: http://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm, (accessed 19 February 2005).
43. A copy of the Law can be found in Zhonghua renmin gongheguo zhengfu caigou fa [The Law of Government Procurement of the People's Republic of China], available at: http://www.ccgp.gov.cn/web/fgtx/zhengfucaigou.htm, (accessed 28 February 2004).
44. Interview with a government supplier in Beijing City in June 2004.
45. Han Mengyu, 'Zhiding "zhengfu caigoufa shishi tiaoli" jidai mingjue de shida wenti' ['The ten big considerations in formulating "the Implementing Regulations of Government Procurement Law"'], Zhongguo zhengfu caigou [China Government Procurement] no. 8, (2004), p. 10.
46. Randall Peerenboom, 'Globalization, path dependency and the limits of law: Administrative law reform and rule of law in the People's Republic of China', Berkeley Journal of International Law 19(2), (2001), pp. 185-186.
47. An interview with a supplier in Beijing in September 2004.
48. Simon Domberger, Christine Hall and Eric Ah Lik Lee, 'The determinants of price and quality in competitively tender contracts', Economic Journal 105, (1995), pp. 1454-1470.
49. World Bank, Rehabilitation Loan: Preidentified Import Component Distribution Monitoring Report (Washington, DC: Russia Department, World Bank, 1994).
50. Gu Yuelian, 'Chengqing zhengfu caigou shida renshi wuqu' ['Clarifying the ten major misunderstandings towards government procurement'], Zhongguo zhengfu caigou [China Government Procurement] no. 11, (2004), p. 43.
51. 'Er ning ning san nian quanguo zhengfu caigou gongzuo tongji fengxi baogao' ['The 2003 statistical report of China's government procurement'], Zhongguo zhengfu caigou wang [Chinese Government Procurement Net], available at: http://www.ccgp.gov.cn, (accessed 4 March 2005).
52. Chen Zhenhui, 'Zhengfu caigou jianguan gongzuo xiangchang he duice yanjiu' ['A study of the current government procurement supervision and improvement suggestions'], Zhongguo zhengfu caigou [China Government Procurement] no. 10, (2004), p. 17.
53. Interview with a government supplier in Beijing City in June 2004. Also see Chen, 'Zhengfu caigou jianguan gongzuo xiangchang he duice yanjiu', p. 17.
54. Huang Mingjin, 'Guangxi Zhuangzu cizhiqu zhengfu caigou de shishi xianchang ji zhengce jianyi' ['The current government procurement in Guangxi Zhuang autonomous region and suggestions to improve the procedure'], Zhongguo zhengfu caigou [China Government Procurement] no. 8, (2004), p. 43.
55. Bernard M. Hoekman, 'Operation of the agreement on government procurement, 1983-1992', in Bernard M. Hoekman and Petros C. Mavroidis, eds, Law and Policy in Public Purchasing: The WTO Agreement on Government Procurement (Ann Arbor: The University of Michigan Press, 1997), p. 95.
56. 'Er ning ning san nian quanguo zhengfu caigou gongzuo tongji fenxi baogao'.
57. Ibid.
58. Hu Ling, 'Shaosu minzu diqu zhengfu caigou zhong cunzai de wenti ji duice' ['The solutions to the problems to the government procurement practices in minorities inhabiting regions'], Zhongguo zhengfu caigou [China Government Procurement] no. 8, (2004), p. 48.
59. Kai-chee Cheung, 'Not so much a model, more a way of life: China's fragmented authoritarianism in budgetary management', in John Wann, Lotte Jensen and Joake de Vries, eds, Controlling Public Expenditure: The Changing Roles of Central Budget Agencies - Better Guardians? (Cheltenham: Edward Elgar, 2003), p. 219;
60. Huang, 'Guangxi Zhuangzu cizhiqu zhengfu caigou de shishi xianchang ji zhengce jianyi', p. 43.
61. 'Xiao Jie fubuzhang zai quanguo zhengfu caigou gongzuo huiyi shang de jianghua'.
62. 'Er ning ning san nian quanguo zhengfu caigou gongzuo tongji fenxi baogao'.
63. Zhang Lin, 'Zhengfu caigou zhong cunzai de wenti yu duice' ['The problems and solutions involved in government procurement'], Zhongguo jinmou daokan [Journal of China Economy and Trade] no. 11, (2004), p. 39.
64. The failure of the Chinese government in 1999 to introduce a fuel tax which was aimed at replacing local levies on the purchase and use of vehicles exemplified the power of local governments in thwarting central government's encroachment on their source of funds. See Christine P. W. Wong, 'Central - local relations revisited: The 1994 tax-sharing reform and public expenditure management in China', China Perspective no. 31, (2000), p. 53.
65. Yang Zhong, Local Government and Politics in China: Challenges from Below (Armonk: M.E. Sharpe, 2003), ch. 4 and 5; Yasheng Huang, 'Administrative monitoring in China', China Quarterly no. 143, (1995), p. 842.
66. Han, 'Zhiding "zhengfu caigoufa shishi tiaoli" jidai mingjue de shida wenti', pp. 8-14.
67. 'Xiao Jie fubuzhang zai quanguo zhengfu caigou gongzuo huiyishang de jianghua'; 'Er ning ning er nian quanguo zhengfu caigou guimo tupo yiqianyi'.
68. 'Xiao Jie fubuzhang zai quanguo zhengfu caigou gongzuo huiyishang de jianghua'; 'Er ning ning er nian quanguo zhengfu caigou guimo tupo yiqianyi'; an interview with a former director of a state-owned enterprise in Dongguan City of Guangdong Province in April 2004.
69. Hoekman, 'Using international institutions to improve public procurement'; Kong, China and the World Trade Organization, p. 190.
70. World Trade Organization, Report of the Working Party on the Accession to China, pp. 69-71, available at: http://docsonline.wto.org/ DDFDocuments/t/WT/min01/3.doc, (accessed 17 February 2004).
71. 'Caizhengbu fubuzhang Xiao Jie zai zhongyang guojia jiguan zhengfu jizhong caigou gongzuo huiyishang de jianghua' ['The speech of Vice Minister of Finance Xiao Jie in the central working conference on central government agencies procurement, 15 April 2004'], Zhongguo zhengfu caigou wang [Chinese Government Procurement Net ], available at: http://www.ccgp.gov.cn/web/zywxdetail.asp?condition=000000000042, (accessed 15 May 2004).
72. Gu, 'Chengqing zhengfu caigou shida renshi wuqu', p. 42.
73. Komuro examined how Japan, a GPA signatory, bent the rules of the GPA. For details, see Norio Komuro, 'Implementation of the GPA in Japan', in Hoekman and Mavroidis, eds, Law and Policy in Public Purchasing, pp. 149-170.
74. Stephan Haggard, Developing Nations and the Politics of Global Integration (Washington, DC: The Brookings Institution, 1995), p. 4.
75. 'State councilor calls for better government procurement', China Internet Information Centre, available at: http://service.china.org.cn/link/wcm/ Show_Text?info_id=93149&p_qry=government%20and%20procurement, (accessed 15 October 2004).
76. 'Report on China's central and local budgets', China Daily, (17 March 2004), available at: http://www.chinadaily.com.cn/english/doc/2004-03/17/ content_315646.htm, (accessed 12 October 2004).
77. 'Caizhengbu fubuzhang Xiao Jie zai zhongyang guojia jiguan zhengfu jizhong caigou gongzuo huiyishang de jianghua'.